Gold 1732,785
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EURUSD 1,1606
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DJIA 34488,50
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OIL.WTI 74,785
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DAX 15319,50
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The energy crisis in Europe is challenging the development of the European economy. The heating season is starting and there is not enough gas in storage. Gas prices have already risen above $1,000 per 1,000 cubic metres, putting strong pressure on the European currency.
EUR/USD
Additionally, oil prices are causing further turmoil for the Euro. It would seem that further growth in oil is being held back by already high prices, but production problems in the Gulf of Mexico as well as the emerging power supply crisis in China are keeping the price of black gold quite strongly in check. What will happen in China next is not very clear. Coal prices have soared to record levels; China is forcing production to shift to a 3-4 day work week to smooth out electricity consumption. China is now trying quite bravely to start changing its production and switching to environmentally friendly fuels, including gas and oil. This makes the whole energy market look scarce and strengthens the US dollar quite a bit.
In due course risky assets have been falling for several trading sessions. Investors are still wary of high inflation, which Jerome Powell talks about practically every time he gives a speech. And according to his statements, the high inflation zone will continue for some months to come.
Unfortunately the EUR/USD broke through the yearly support zone located at 1.1690-1.1670. Demand for the dollar is still high, as many investors have started to switch from risky assets to cheaper bonds. In the near term, a rise in the pair is possible, as the dollar is strengthening almost all September and a correction is inevitable, but a trend change can only happen after the energy market cools down.
08.00 UK second quarter GDP
14.00 German Harmonised House Price Index YTD
14.30 Annual US GDP data
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